Private equity: more lawyers in the house By The Lawyer 9 March 2009 09:37 13 December 2015 15:28 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer Anonymous 9 March 2009 at 11:42 Carried Interest President Obama intends to tax carried interest received by Private Equity partners as Ordinary Income, rather than the lower Capital Gains rate. This issue was also debated in Parliament back in 2007. Now that counsel also stands to receive “carry”, I wonder if it would be treated as part of their ordinary income and taxed as such, or treated as capital gain along with other partners managing the funds. Does the author or anybody know? Reply Link Michelle 9 March 2009 at 12:48 Michelle Its simple, create an offshore holding vehicle and place these carried interest in it. It cant be treated as income as it is a one off-payment. Obama can do whatever he wants but tax planning will always survive. Reply Link John Kaufmann 10 March 2009 at 23:18 Offshore vehicle Michelle, not so easy to do anymore. See http://www.klgates.com/newsstand/Detail.aspx?publication=4982 Reply Link Anon 11 March 2009 at 09:51 Huh? Wow, finally a good new story! Get real… private equity is crashing and burning with the rest of the economy: http://www.bloomberg.com/apps/news?pid=20601039&sid=azhmx1M7Kb_I&refer=home Reply Link Anonymous 11 March 2009 at 16:50 Michelle Thank God it is not that easy in the UK, it is this sort of structuringthat is keeping my fully employed Reply Link Name Email Cancel reply Threaded commenting powered by interconnect/it code.